1.  i) Contingent liabilities not provided for:
 
 Claims against the Company not acknowledged as debts Rs. 707.30 lacs
 (previous year Rs. 147.66 lacs).
 
 (Rs. in lacs)
 
 Description                  As at September        As at September
                                   30,2010                 30, 2009
 
 Sales Tax/Trade Tax Act             12.60                  9.87
 
 State Excise Act                    17.34                  9.26
 
 Central Excise Act                 239.96                 11.89
 
 Income tax                         316.73                    -
 
 Others                             120.67                116.64
 
 Total                              707.30                147.66
 
 All the above matters are subject to legal proceedings in the ordinary
 course of business. The legal proceedings, when ultimately concluded
 will not in the opinion of the management, have a material effect on
 results of operations or financial position of the Company.  ii)
 Corporate guarantee of Rs. Nil (previous year Rs. 10,000.00 lacs) given
 by the Company to banks on behalf of farmers :
 
 iii) Consequent to redemption of outstanding preference share capital
 aggregating Rs. 216.00 lacs, the cumulative preference dividend arrears
 of Rs. 77.76 lacs stands extinguished.
 
 2.  Estimated amount of contracts (net of advances) remaining to be
 executed on capital account Rs. 304.92 lacs (previous year Rs. 459.40
 lacs).
 
 3.  (a) During the year ended March 31, 2006, the Company had issued
 Zero Coupon Foreign Currency Convertible Bonds (FCCB) aggregating US$
 33 million (Rs.14,685 lacs at issue). The bondholders have an option to
 convert these bonds into shares, at the conversion price of Rs.  153
 (including share premium of Rs. 143) per share {initial conversion
 price of Rs.170 (including share premium of Rs.160) per share} with a
 fixed rate of exchange on conversion of Rs.44.1050 = US $ 1, at any
 time on or after April 10, 2006 up to February 9, 2011.  The Company
 has an option to convert principal amount of the bonds between March
 10, 2007 and March 10, 2011, subject to the satisfaction of certain
 conditions. Unless previously converted, redeemed or repurchased and
 cancelled, the bonds fall due for redemption on March 11, 2011 at
 137.033% of their principal amount.
 
 (b) During the year, the Company has bought back FCCB having a face
 value of US$ 1.50 Million (previous year US$ 29.61 Million) and
 cancelled the same. Consequent thereto the Company has:
 
 (i) written back the premium provision aggregating Rs.  180.83 lacs
 (previous year Rs. 2,438.33 lacs) attributable to these FCCB by
 crediting back Rs. 73.05 lacs (previous year Rs. 700.14 lacs) {(net of
 tax of Rs. 37.61 lacs (previous year Rs. 360.52 lacs)} to securities
 premium account and Rs. 70.17 lacs (previous year Rs. 1,377.67 lacs) to
 concerned fixed assets to which it was capitalized in earlier years,
 and
 
 (ii) Credited gain amounting to Rs. 138.51 lacs (previous year Rs.
 7,220.73 lacs) arising on buy back and cancellation of these FCCB under
 the head Other Income in schedule 14 and Rs. 27.34 lacs (previous
 year Rs. 1,351.39) to concerned fixed assets to which it was
 capitalized in earlier years.
 
 4.  Based on the information available with the Company, the balance
 due to Micro and Small Enterprises as defined under the  The Micro,
 Small and Medium Enterprises Development Act, 2006 is Rs 1.01 lacs
 (previous year Rs. 0.10 lac). Further no interest during the year has
 been paid or is payable under the terms of the  The Micro, Small and
 Medium Enterprises Development Act, 2006.
 
 5.  Employee Benefits
 
 The Company has classified the various benefits provided to employees
 as under:-
 
 a) Defined contribution plans:
 
 i) Superannuation fund 
 
 ii) Provident fund
 
 b) Defined benefits plans
 
 a) Gratuity
 
 b) Compensated absences - Earned Leave/ Sick Leave/ Casual Leave
 
 6.  Revenue expenditure on research and development Rs. 7.99 lacs
 (previous year Rs. 6.71 lacs).
 
 7.  Related Party disclosure under Accounting Standard 18
 
 A.  Name of related party and nature of related party relationship.
 
 Subsidiary: Simbhaoli Global Commodities DMCC
 
 Key Management Personnel: Mr. G M S Mann, Mr.Gurpal Singh, Dr. G S C
 Rao and Mr. Sanjay Tapriya.
 
 Relatives of Key management personnel: Mrs. G R Lakshmi (wife of Dr. G
 S C Rao), Mrs. Mamta Tapriya (wife of Mr. Sanjay Tapriya), Mr. B D
 Tapriya (father of Mr.  Sanjay Tapriya), Mr. Govind Singh Sandhu
 (brother of Mr.  Gurpal Singh), Ms. Gursimran Kaur Mann (daughter of
 Mr. G M S Mann) and Mr. Angad Singh (son of Mr. Gurpal Singh).
 
 Enterprise over which key management personnel exercise significant
 influence: Dholadhar Investments (P) Ltd. (enterprise over which Mr. G
 M S Mann exercises significant influence), Pritam Singh Sandhu
 Associates Pvt. Ltd (enterprise over which Mr. Gurpal Singh exercises
 significant influence) and Uniworld Sugars Limited (enterprise over
 which Mr. G M S Mann, Dr. G S C Rao and Mr. Sanjay Tapriya exercise
 significant influence).
 
 8. Segment reporting
 
 A.  Business segments:
 
 Based on the guiding principles given in Accounting Standard AS-17
 Segment Reporting notified by the Companies (Accounting Standard)
 Rules, 2006, the Companys business segments include: Sugar, Alcohol
 and Power.
 
 B.  Geographical segments:
 
 Since the Companys activities/operations are primarily within the
 country and considering the nature of products it deals in, the risks
 and returns are same and as such there is only one geographical
 segment.
 
 C.  Segment accounting policies:
 
 In addition to the significant accounting polices applicable to the
 business segments as set out in note 1 of schedule 17 Notes to the
 Accounts, the accounting policies in relation to segment accounting
 are as under:
 
 a) Segment revenue and expenses:
 
 Joint revenue and expenses of segments are allocated amongst them on a
 reasonable basis. All other segment revenue and expenses are directly
 attributable to the segments.
 
 b) Segment assets and liabilities:
 
 Segment assets include all operating assets used by a segment and
 consist principally of operating cash, debtors, inventories and fixed
 assets, net of allowances and provisions which are reported as direct
 offsets in the balance sheet. Segment liabilities include all operating
 liabilities and consist principally of creditors and accrued
 liabilities. Segment assets and liabilities do not include income
 taxes. While most of the assets/liabilities can be directly attributed
 to individual segments, the carrying amount of certain
 assets/liabilities pertaining to two or more segments is allocated to
 the segments on a reasonable basis.
 
 c) Inter segment sales:
 
 Inter segment sales between operating segments are accounted for at
 market price. These transactions are eliminated on consolidation.
 
 9. In the previous year, pursuant to the Notification dated March 31,
 2009 issued by The Ministry of Corporate Affairs, amending Accounting
 Standard (AS) 11 - Effects of Changes in Foreign Exchange Rates, the
 Company had chosen to exercise the option under paragraph 46 inserted
 in the standard by the notification. Accordingly with retrospective
 effect from 1st October 2007 onwards exchange differences on all long
 term monetary items to the extent such items were used for financing
 fixed assets were added to/subtracted from the cost of those fixed
 assets and depreciated over the balance useful life of the assets.
 During the year, the Company has deducted from fixed assets Rs. 501.28
 lacs (previous year added Rs. 466.27 lacs) being the exchange
 differences on long term monetary items relatable to the acquisition of
 fixed assets. As a result of such change, net loss before tax and after
 tax is higher by Rs. 501.28 lacs and Rs. 334.77 lacs respectively
 (previous year profit before tax and after tax lower by 129.63 lacs).
 
 10. On the basis of future projections taken on record by the Board of
 Directors of the Company after considering the recent improvements in
 sugar prices and margins, the sugar inventory available with the
 Company for disposal, changing government policies, as well as the
 additional capacities set up in the previous years for production of
 sugar, power and ethanol resulting in de-risking of the business
 operations and given the cyclicality of sugar industry and other steps
 being taken, the management is confident that there is a virtual
 certainty that sufficient future taxable income will be available
 against which deferred tax asset (net) of Rs. 7,040.49 lacs will be
 realized in the future.
 
 11.  On July 23, 2009 a vessel carrying 22,500 MT of raw sugar
 purchased by the Company sank near South Africa in relation to which an
 insurance claim for Rs. 4,780.00 lacs has been filed with the insurance
 Company. The Company has also simultaneously obtained undertaking from
 the London Steamship Owners Mutual Insurance Association Limited,
 London, the P&I club of vessel owner to compensate the loss suffered by
 the Company to the extent of USD 14.5 million, in case arbitration
 proceedings will be decided in favour of the Company. The arbitration
 proceedings have been progressing as per schedule.
 
 The Insurance Company vide letter dated July 30, 2010 has repudiated
 the aforesaid insurance claim. The Company has initiated legal
 proceedings against this decision. The management, based on the facts
 of the case and opinion received from the legal experts, is confident
 that the insurance claim would be settled in favour of the Company and
 no loss would arise on settlement thereof.
 
 12. The Company has accounted for cane purchases for sugar season
 2007-08 at Rs. 110 per quintal, the rate at which it has made payment
 to the cane growers as per the interim order of the Honble Supreme
 Court, against the State Advised Price of Rs. 125 per quintal fixed by
 the Uttar Pradesh State Government. Necessary adjustments will be made
 in accordance with subsequent orders of the Honble Court in the
 matter.
 
 13. The proceeds of Rs. 10.97 Lacs from 28,140 stock options/ shares
 issued and allotted to eligible employees of the Company were utilized
 for capital expenditure/working capital requirement of the Company as
 per the resolutions passed by the shareholders in the general meetings.
 
 14. During the earlier years, the Company, without payment of customs
 duty, had purchased imported raw sugar aggregating 1,32,013 metric
 tonnes for Rs 15,225.71 lacs for conversion into white sugar. In terms
 of the advance license(s) granted for this purpose by the office of
 Director General of Foreign Trade and subsequent extensions therein,
 the Company is required to complete the export of white sugar
 aggregating 1,06,325 metric tonnes by March 31, 2011 and 19402 metric
 tones by February 17, 2012. As at September 30, 2010 outstanding export
 obligation is 40,800 metric tonnes. The management is confident that
 the export obligation shall be fully met and no loss is foreseen in
 complying with such obligation.
 
 15. During the second half of the current year, due to a steep decline
 in the sugar prices on account of change in sugar production estimates
 in India, the Companys operations were adversely affected due to under
 recovery of cost of production as well as marking to net realizable
 value of inventory resulting in significant operating/cash losses to
 the Company. However, in view of the improved industry outlook on
 account of better sugar prices accompanied with significant reduction
 in inputs costs and after considering the remedial measures being taken
 by the Company for improving the financial position, the management is
 confident about the operation outlook for the ensuing year.
 
 16. Previous year figures have been regrouped/ recast wherever
 necessary.